Calls for a unified regulatory framework governing artificial intelligence are intensifying across the United Kingdom, as business leaders warn that the current patchwork of guidance and voluntary standards is stifling innovation and creating compliance confusion.
A survey published this week by the Confederation of British Industry found that 72 per cent of UK firms deploying AI tools believe clearer regulation would accelerate adoption rather than hinder it. The findings challenge the prevailing assumption that businesses favour a hands-off approach from government.
“Companies are not asking for less regulation — they are asking for smarter regulation,” said Dr. Amara Osei, director of the Centre for Technology Policy at King’s College London. “What frustrates businesses most is uncertainty. When the rules are unclear, compliance becomes a guessing game, and that is where investment decisions stall.”
The UK government has so far adopted a principles-based, sector-led approach to AI governance, tasking existing regulators such as the Information Commissioner’s Office and the Competition and Markets Authority with applying current laws to new technologies. While this approach allows for flexibility, critics argue it creates overlapping remits and inconsistent enforcement.
By contrast, the European Union’s AI Act, which came into force earlier this year, establishes a comprehensive risk-based framework. Some UK firms operating across European markets have reported that complying with the EU regime while navigating the UK’s more fragmented landscape has added significant administrative overhead.
Ministers have signalled an openness to legislating on AI safety, particularly for high-risk applications in healthcare, criminal justice, and financial services. The forthcoming Digital Information and Smart Data Bill is expected to include provisions that clarify liability and transparency obligations for AI developers and deployers.
“The question is not whether we regulate AI, but how we do it in a way that is proportionate, interoperable with our international partners, and genuinely supports British innovation,” a government spokesperson said.
Industry groups have urged the government to prioritise international alignment, particularly with the EU and United States, to avoid fragmentation that would disadvantage UK-based companies. The debate is likely to intensify in the months ahead as AI capabilities continue to advance at pace.